Page 2583 - Week 07 - Wednesday, 2 July 2008

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Amendment agreed to.

MR GENTLEMAN (Brindabella) (12.19): I seek leave to move amendments Nos 8 to 10 circulated in my name together.

Leave granted.

MR GENTLEMAN: I move amendments Nos 8 to 10 circulated in my name together [see schedule 1 at page 2653].

Amendment No 8 replaces the reference to “customers” with “occupiers”, to retain the consistent references in the bill. I spoke to Mrs Dunne about this a little earlier.

Amendment No 9 replaces clause 9 (3) (b) (i). The new clause sets out a revised model in amended clause 6, with references to amounts payable by distributors, amounts payable by suppliers, and any additional metering costs passed on to an occupier under the proposed section 6 (2) (c).

Amendment 10 changes the reference in clause 9 (4) to “the highest retail price of electricity for a domestic customer”. The amendment means that the transitional franchise tariff retail price is the base rate to which the multiplier is applied to calculate the premium. The transitional franchise tariff retail price is the default price provided in the ACT retail electricity market and is set by the Independent Competition and Regulatory Commission, consistent with what an effective supplier would provide to the market.

Members should be aware that this amendment now increases the incentive to generators, making this feed-in law model the most effective and generous feed-in law in Australia. The TFT set by the ICRC is now over 15c per kilowatt hour. This greater incentive, we believe, will cause a slightly higher cost to be borne by other consumers. Our modelling shows the initial cost of 80c per year to all consumers will now rise to approximately $1.05 in the first year. While this does raise our contributions, it is worth while to note that Dr James Prest from the ANU’s environmental law division mentioned previously on ABC radio that the cost to offset the tariff is the equivalent of replacing two incandescent light bulbs with compact fluorescent ones in your own home.

DR FOSKEY (Molonglo) (12.22): I certainly support these amendments but I do seek clarification that the new phrase “additional metering costs that are passed on to the occupier” does not mean that people who participate in the feed-in tariff will not being paying anymore in their metering costs than other householders.

MRS DUNNE (Ginninderra) (12.22): In passing these amendments, I need to point out to members that my previous calculation of abatement of $488 a tonne has just gone up to $501 a tonne. It is very expensive abatement. Mr Gentleman and I have discussed that. Although we go into this with our eyes open, we should be, at the same time, working on some of the cheaper abatements that this government has steadfastly avoided doing.

Amendments agreed to.

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